Ganesh Natarajan: Leading Innovation and Organizational Change at Zensar (A)
Who:
Chief Executive Officer Ganesh Natarajan, Zensar
Immediate Issue/Problem Being Faced:
Zensar’s CEO and top management team had been planning to consolidate staff and resources into three business units: application portfolio management, business process outsourcing and enterprise application services. However, Natarajan had planned also to introduce one more business unit, Solution BluePrint (SBP) led by Chief Technology Officer, Dilip Ittyera. Natarajan knew that there would be some resistance of his proposal and wondered if he should still go ahead with it. Because of all of the executives’ dismay of Ittyera lack of leadership abilities, Natarajan was wondering if it was a good idea to create a business unit around SBP afterall.
Basic Issues:
• Dilip Ittyera was the probable candidate to run the new business unit; however, he was not considered ‘manager material’. Natarajan and others were fully aware of this.
• U.S. sales executives and other existing customers were unsure and/or uncomfortable with the reliability, unproven results and usefulness of SBP.
• Ittyera’s department doesn’t make revenues and they have little sales experience, so there is little incentive to form a separate business unit.
• Natarajan believes if Zensar waits too long and doesn’t speed up the SBP business unit, they will lose precious time – Natarjan wants to have the competitive edge and this is what he believes would take Zensar to the next level.
• A trend arose that enticed larger companies to start to rely not only on a tier one company, but also a tier two company to have a ‘portfolio’ as to disperse their risk. This trend also included companies’ desire to have their IT vendors ‘at hand’ so they would be readily available when needed and they would also be able to assume more accountability. All of this was good for Zensar as it would bring them closer to competing for market share.
-In order to successfully implement the SBP, it would require the support of the company, which it does not currently have -There is also a lack of confidence in the product itself and this uncertainty has lead to a lack of confidence in management decisions.
Urgency/Importance:
-Natarajan, believes the longer they wait to implement the new model the less advantage they will have
Decision Criteria:
1. The risk should be lower than the benefit of alternative. If the risk will lose money than the benefit can bring back, it will be worthless.
2. This should be good for the reputation of company
3. It should be good for company to expand the market share.
4. This must be reliable that senior executives can support
5. It should be in short time because Natarajia believe SBP will bring competive advance to company and take company to the new level. They need decided and implement quickly. 6. it should have the support of the senior executives and staff. They should engage in consulting the different people in the organization to retain the buy in they need.
Alternatives:
1. Go ahead with initial plans to make a fourth business unit, solely dedicated to SBP and have Ittyera heading it because he is highly knowledgeable with SBP.
2. Include SBP with one of the other business units because it is not viable for a stand-alone business unit and the CTO department does not generate revenues.
3.Make a SBP the fourth business unit, however find a better candidate to fulfill the position, as to run a smoother, wiser unit – someone with managerial and technical experience (i.e. a veteran)
Missing Information:
three business units: application portfolio management, business process outsourcing and enterprise application services. We need the information about the detials of each unit and the relationship between them and SBP. This will help up to choose whcih one should be preffer when we could do all the business units once a time.
Assessment of Alternatives:
1. Go ahead with initial plans to make a fourth business unit, solely dedicated to SBP and have Ittyera heading it because he is highly knowledgeable with SBP.
PROS
• The business unit will succeed and prosper because Ittyera is proficient at SBP and demonstrating to customers how he can help them.
• This unit will benefit the company as a whole and allow Zensar the competitive advantage and they can realize their tier two ‘dream’/status goals.
• Natarjan and Ityerra will have prestige – ultimate position for future career goals and success.
CONS
• Ityerra’s lack of management skills, along with his general optimism and promises made may backfire on Zensar and they could lose big money.
• Zensar could lose important present and potential clients if things don’t work out as planned or promised.
• The business unit could be too costly on the other business units.
2. Include SBP with one of the other business units because it is not viable for a stand-alone business unit and the CTO department does not generate revenues.
PROS
• Zensar will not waste money on a business unit that is does not generate revenues.
• It is a cautious move that should ‘save face’ – senior executives will be pleased.
• Reduce the ristrict to the SBR.
CONS
• Zensar may never realize their full potential because they are too cautious.
• Interest in their possible breakthrough innovation will be lost and their revenues as a result will not capitalize.
• This will be a stable policy that meaningless for the innovation, and this can not empower their employees.
3. Make a SBP the fourth business unit, however find a better candidate to fulfill the position, as to run a smoother, wiser unit – someone with managerial and technical experience (i.e. a veteran)
PROS
• The new leader will be better-prepared and the company will in a better position to succeed.
• Zensar will reap exponential rewards because the new leader will have exemplary skills and execution.
•
CONS
• Even with the new leader, the business unit may bring the other business unit resources down, mainly in terms of financial resources.
• The new leader may not be able to fully grasp the concept of SBP and the company will not prosper.
• The new leader will caused change management issue. They need more time to know the new leader to run the business smoothly.
Selection of Preferred Alternative:
I will recommend that Zensar will chosse alternative 2, which includes SBP with one of the other business unit beacuseit it saves more cost and it can outsource the management team to run the business. In the articlue, we know the relationship between executives and employees. After the team set up, Zensar will restrict t o the SBR, and change to the competitive advantage one -. SBP. Or Zensar will outsource another management team to open the market to SBP. For the employee layout, Zensar should consider more about the performance of employees. If the other department needs them, Zensar can leave them and do their expertise job.
Assumptions:
Except for the leadership management, ther is no more factors affect the success of SBP
SBP has already owned the competitve advantage in the software and tools market
Zenaer
Action/Implementation Plan:
We recommendate to choose the alternative 2 which is includes SBP with one of the other business unit beacuseit it saves more cost and it can outsource the management team to run the business.
1. In the short time (1-3 month), Company needs creates the innovation team and makes the department managers to be the committee advisory to monitor the process of the innovation. During this time, the innovation team needs to set up the detail schedule for the innovation and make assessment of each unit of business include SBP.
2. Company need make a good strategy about change managment to improve the leadership between different level and new project team which will in charge of this SBP.
3.Company will find someone who know SBP well enough to play the role of interpreter and interpret SBP to all members.
4. Based on the survy about SBP choose which business unit can coorprate with SBP will and help company expand the market.
Case Analysis Template
Reading:
Ganesh Natarajan: Leading Innovation and Organizational Change at Zensar (A)
Who:
Chief Executive Officer Ganesh Natarajan, Zensar
Immediate Issue/Problem Being Faced:
Zensar’s CEO and top management team had been planning to consolidate staff and resources into three business units: application portfolio management, business process outsourcing and enterprise application services. However, Natarajan had planned also to introduce one more business unit, Solution BluePrint (SBP) led by Chief Technology Officer, Dilip Ittyera. Natarajan knew that there would be some resistance of his proposal and wondered if he should still go ahead with it. Because of all of the executives’ dismay of Ittyera lack of leadership abilities, Natarajan was wondering if it was a good idea to create a business unit around SBP afterall.
Basic Issues:
• Dilip Ittyera was the probable candidate to run the new business unit; however, he was not considered ‘manager material’. Natarajan and others were fully aware of this.
• U.S. sales executives and other existing customers were unsure and/or uncomfortable with the reliability, unproven results and usefulness of SBP.
• Ittyera’s department doesn’t make revenues and they have little sales experience, so there is little incentive to form a separate business unit.
• Natarajan believes if Zensar waits too long and doesn’t speed up the SBP business unit, they will lose precious time – Natarjan wants to have the competitive edge and this is what he believes would take Zensar to the next level.
• A trend arose that enticed larger companies to start to rely not only on a tier one company, but also a tier two company to have a ‘portfolio’ as to disperse their risk. This trend also included companies’ desire to have their IT vendors ‘at hand’ so they would be readily available when needed and they would also be able to assume more accountability. All of this was good for Zensar as it would bring them closer to competing for market share.
-In order to successfully implement the SBP, it would require the support of the company, which it does not currently have-There is also a lack of confidence in the product itself and this uncertainty has lead to a lack of confidence in management decisions.
Urgency/Importance:
-Natarajan, believes the longer they wait to implement the new model the less advantage they will haveDecision Criteria:
1. The risk should be lower than the benefit of alternative. If the risk will lose money than the benefit can bring back, it will be worthless.2. This should be good for the reputation of company
3. It should be good for company to expand the market share.
4. This must be reliable that senior executives can support
5. It should be in short time because Natarajia believe SBP will bring competive advance to company and take company to the new level. They need decided and implement quickly.
6. it should have the support of the senior executives and staff. They should engage in consulting the different people in the organization to retain the buy in they need.
Alternatives:
1. Go ahead with initial plans to make a fourth business unit, solely dedicated to SBP and have Ittyera heading it because he is highly knowledgeable with SBP.
2. Include SBP with one of the other business units because it is not viable for a stand-alone business unit and the CTO department does not generate revenues.
3.Make a SBP the fourth business unit, however find a better candidate to fulfill the position, as to run a smoother, wiser unit – someone with managerial and technical experience (i.e. a veteran)
Missing Information:
three business units: application portfolio management, business process outsourcing and enterprise application services. We need the information about the detials of each unit and the relationship between them and SBP. This will help up to choose whcih one should be preffer when we could do all the business units once a time.
Assessment of Alternatives:
1. Go ahead with initial plans to make a fourth business unit, solely dedicated to SBP and have Ittyera heading it because he is highly knowledgeable with SBP.
PROS
• The business unit will succeed and prosper because Ittyera is proficient at SBP and demonstrating to customers how he can help them.
• This unit will benefit the company as a whole and allow Zensar the competitive advantage and they can realize their tier two ‘dream’/status goals.
• Natarjan and Ityerra will have prestige – ultimate position for future career goals and success.
CONS
• Ityerra’s lack of management skills, along with his general optimism and promises made may backfire on Zensar and they could lose big money.
• Zensar could lose important present and potential clients if things don’t work out as planned or promised.
• The business unit could be too costly on the other business units.
2. Include SBP with one of the other business units because it is not viable for a stand-alone business unit and the CTO department does not generate revenues.
PROS
• Zensar will not waste money on a business unit that is does not generate revenues.
• It is a cautious move that should ‘save face’ – senior executives will be pleased.
• Reduce the ristrict to the SBR.
CONS
• Zensar may never realize their full potential because they are too cautious.
• Interest in their possible breakthrough innovation will be lost and their revenues as a result will not capitalize.
• This will be a stable policy that meaningless for the innovation, and this can not empower their employees.
3. Make a SBP the fourth business unit, however find a better candidate to fulfill the position, as to run a smoother, wiser unit – someone with managerial and technical experience (i.e. a veteran)
PROS
• The new leader will be better-prepared and the company will in a better position to succeed.
• Zensar will reap exponential rewards because the new leader will have exemplary skills and execution.
•
CONS
• Even with the new leader, the business unit may bring the other business unit resources down, mainly in terms of financial resources.
• The new leader may not be able to fully grasp the concept of SBP and the company will not prosper.
• The new leader will caused change management issue. They need more time to know the new leader to run the business smoothly.
Selection of Preferred Alternative:
I will recommend that Zensar will chosse alternative 2, which includes SBP with one of the other business unit beacuseit it saves more cost and it can outsource the management team to run the business. In the articlue, we know the relationship between executives and employees. After the team set up, Zensar will restrict t o the SBR, and change to the competitive advantage one -. SBP. Or Zensar will outsource another management team to open the market to SBP. For the employee layout, Zensar should consider more about the performance of employees. If the other department needs them, Zensar can leave them and do their expertise job.
Assumptions:
Except for the leadership management, ther is no more factors affect the success of SBP
SBP has already owned the competitve advantage in the software and tools market
Zenaer
Action/Implementation Plan:
We recommendate to choose the alternative 2 which is includes SBP with one of the other business unit beacuseit it saves more cost and it can outsource the management team to run the business.1. In the short time (1-3 month), Company needs creates the innovation team and makes the department managers to be the committee advisory to monitor the process of the innovation. During this time, the innovation team needs to set up the detail schedule for the innovation and make assessment of each unit of business include SBP.
2. Company need make a good strategy about change managment to improve the leadership between different level and new project team which will in charge of this SBP.
3.Company will find someone who know SBP well enough to play the role of interpreter and interpret SBP to all members.
4. Based on the survy about SBP choose which business unit can coorprate with SBP will and help company expand the market.